Earnings will become major interest for investors this week as some of the largest U.S. companies from a wide range of sectors are set to report Q2 2021 earnings.
As the U.S. economic recovery keeps going very well after better than expected rollouts of COVID vaccines, investors are expected to concentrate on inflationary pressures and find out whether they are squeezing corporate margins. Taking advantage of earnings optimism, all three biggest U.S. indices continued their upward movement this year, with the S&P 500 and the NASDAQ 100 Index trending at their peak levels.
Below, we’ve presented a stock investors are closely watching as Q1 earnings season ramps into full swing:
Streaming entertainment behemoth Netflix (NASDAQ:NFLX) is scheduled to report Q2 earnings on Tuesday, July 20th after the market closes. Experts are forecasting $3.1 per share profit on sales of $7.32 billion.
After rebounding and demonstrating great results during the COVID-19 pandemic, Netflix stock is losing some steam as subscriber growth slows down and competition in the streaming market gets stronger. In April, the Los Gatos, California-headquartered company said that the number of net new members during Q1 was 2 million short of its own forecast.
Taking in account Friday’s $530.31 close, Netflix’s shares have decreased 2% so far this year, given the tech-giant NASDAQ’s 12% acceleration over the same period. This week’s earnings report will be critical and is expected to demonstrate whether the stock is to break this sluggish cycle and move higher.
Netflix has to prove it’s well-positioned to beat its rivals even when the pandemic-heated expansion in user growth is cooling fast.